Is XS Safe? Operating Company, Licenses and Fund Protection Checked Against Official Sources
Wondering whether XS is safe, but finding the information about its operating company and licenses scattered and hard to judge?
XS's official pages state that XS Ltd (Seychelles) is regulated by the FSA under license SD089, and describe segregation of client funds and a negative balance protection policy.
However, which entity your account falls under as a resident of Japan has to be confirmed on the registration screen. This article sorts out what the official sources say and what you should check.
In short: XS's safety can be checked within what the official pages state
- The operating company XS Ltd is a Seychelles entity, and the official site states FSA license SD089
- The official help center states that client funds are kept separate from the company's operating funds
- A negative balance protection policy exists, and clients are not asked to cover losses beyond their investment
- The official site says investor compensation differs by entity. Lloyd's liability insurance is a separate mechanism
- Always confirm which entity applies to your account on the registration screen (for residents of Japan)
XS's operating company and licenses
XS's official regulation page lists several entities by region. The entity operating www.xs.com is stated to be XS Ltd (Seychelles).
| Entity | Location | Regulator | Number |
|---|---|---|---|
| XS Ltd | Seychelles | FSA (Financial Services Authority) | SD089 |
| XS Prime Ltd | Australia | ASIC | 374409 |
| XS Markets Ltd | Cyprus | CySEC | 412/22 |
| XS Finance Ltd | Labuan (Malaysia) | LFSA | MB/21/0081 |
| XS ZA (Pty) Ltd | South Africa | FSCA | FSP 53199 |
| XS Trade Services Ltd | Mauritius | FSC | GB25204786 |
The same page also says services are not provided to residents of the United States, Iran, North Korea and some other countries. Check the registration screen to see which entity serves residents of Japan.
How XS handles client funds and compensation
- Segregation: the official help center states that "client funds are segregated from the company's operating funds"
- It explains that funds are held in separate accounts, cannot be used for business expenses, and are reconciled daily
- Insurance: liability insurance underwritten by Lloyd's of London, with a stated limit of up to USD 5 million
- The insurance costs clients nothing, and the page says it applies automatically when you open a live account
The insurance page says cover applies to losses above USD 10,000, up to USD 5 million. It is not clear from the page whether the limit is per client or in total.
The regulation page explains that investor compensation arrangements depend on which XS entity you trade with. Treat this as a separate system from the trust safeguarding used by FX brokers in Japan.
XS negative balance protection and trading conditions
The official help center says "XS applies a negative balance protection policy" and that clients are not asked to cover losses beyond their investment. It does not state which entity's policy this is.
| Account | Spread (EURUSD average) | Commission | Minimum deposit |
|---|---|---|---|
| Standard | 1.1 pips | None | No limit |
| Cent (MT5 only) | 1.1 pips | None | No limit |
| Pro | 0.7 pips | None | $500 |
| Elite | 0.1 pips | $6 round turn | $500 |
Maximum leverage is 1:2000*, with separate conditions by account. The stop-out level depends on the account and the conditions that apply, so check the instrument specifications before trading.
What to check before using cashback with XS
- Cashback is a return based on trading volume. It does not guarantee the broker's safety
- It applies to new accounts opened via XB's referral link. The cashback amount (USD per lot) will be posted when XB launches in December
- Whether it can be combined with bonuses follows XS's terms
- Deposit and withdraw in your own name, and make sure your registration details match your ID documents
- Trading lots too large for your margin can cause losses greater than the cashback
Until the cashback amount is confirmed, avoid building a funding plan that assumes it. We also do not recommend trading just to increase volume.
Check account types, deposits and withdrawals, and how to open an account on the XS broker page.
View XS detailsFAQ
Q.Is XS safe?
XS's official pages state XS Ltd's FSA license (SD089), segregation of client funds, and a negative balance protection policy. This is not a guarantee of safety, and you can still incur losses. Confirm which entity applies to you on the registration screen.
Q.Who operates XS?
XS's official regulation page lists XS Ltd (Seychelles, company number 8428765-1) as the entity operating www.xs.com. Check the registration screen to see which entity applies to residents of Japan.
Q.Does XS have zero-cut (negative balance protection)?
The official help center says a negative balance protection policy applies and that clients are not asked to cover losses beyond their investment. It does not name the applicable entity, so check the terms for the conditions.
Sources
- XS Regulations (checked 2026-10-22)
- XS Client Protection (Help Center) (checked 2026-10-22)
- XS Insurance (checked 2026-10-22)
- XS Account Types (Preferred) (checked 2026-08-02)
This article is for information purposes only and is not investment advice. Conditions may change, so please check each broker's official page for the latest information. Offshore FX and CFD trading carries a risk of losses exceeding your principal.
